3 Major Risks When Taking Social Security at Age 70

Tax and Medicare considerations can weigh heavily on later-age payouts.

Published: 3/19/2026, 2:07:23 PM EDT

3 Major Risks When Taking Social Security at Age 70 — The "retirement test" social security law can get complicated fast, especially in the case of those who are self employed. (Miljan Zivkovic/Shutterstock)

U.S. seniors have a big decision to make when they turn 62. That birthday gives Americans the opportunity to start receiving Social Security benefits.

The decision grows larger as claiming Social Security is only an option; program participants can also elect to claim benefits up to age 70, when payouts are highest. Correspondingly, taking Social Security at age 62 provides the lowest payouts. Every year a Social Security beneficiary waits to take benefits adds 8 percent to payout totals, and that’s real money.

“Leveraging delayed retirement credits can significantly enhance your monthly check, as benefits increase by a guaranteed percentage for each year you delay claiming past full retirement age, up to 70,” Marc Pamatian, founder at Chief Bookkeeping Officer in Newport, California, told NTD News. “Having spent over a decade advising clients and analyzing retirement strategies, I’ve witnessed how timing alone can create up to a 32 percent increase in payouts.”

Big Risks in Taking Social Security at Age 70

While it’s tempting to wait it out and claim maximum Social Security at 70, doing so also opens the door to significant risks, which program recipients need to weigh before making a payout decision.

These three issues should be at the top of that “Social Security factors to weigh” list.

1. A Premature Demise

Accounting experts say the primary risk of waiting until 70 years old to start Social Security is premature death.

“Waiting to collect is a great strategy for many workers, but financially it only makes sense if you live long enough for the higher monthly payments to offset the delayed payments you could have received as early as 62 years old,” John Madison, a certified public accountant in Oilville, Virginia, told NTD News.

Basically, if you wait until 70 to claim SSA benefits, you’re betting on living longer during your retirement and thus justifying the delay. “If your health or life expectancy changes, then you can't recover any of the foregone income from the years before you begin claiming,” Joe Braier, CEO and president at the financial management firm Lake Country Advisors, told NTD. “Therefore, if you enter retirement temporarily, you have fewer options for flexibility when you are faced with unexpected costs.”

2. Financially Compensating by Raiding a Retirement Account

Some people delay their benefit payments without considering how, and if, to withdraw from other assets, especially existing retirement savings.

“Consequently, this can lead to forcing you to take much larger withdrawals from your retirement plans, and therefore resulting in you being subjected to much larger tax liabilities, further reducing the overall stability of your retirement plan instead of increasing it,” Braier noted.

At age 62, you can theoretically take Social Security and steer benefits into a professionally managed investment fund.

“If you start to apply reasonable rates of return to your investments that you would not have had to spend down earlier in lieu of collecting earlier, then you accumulate much more in total assets over your lifetime,” Joe Favorito, managing partner at Landmark Wealth Management in Melville, New York, told NTD.

Consequently, while you may have collected less from Social Security, you more than offset that with portfolio growth, Favorito noted.

3. The Tax Impact Could Be Negative

Tax and Medicare considerations can also weigh heavily on later-age payouts.

“A larger Social Security benefit later can increase provisional income, potentially leading to higher taxation of benefits and higher Medicare premiums if not properly planned,” Lynn Toomey, a retirement educator and founder of Her Retirement.com, told NTD.

Avoid Making Big Social Security Decisions On Your Own

The biggest mistake Toomey sees in her practice is seniors making Social Security decisions in isolation.

“Many people assume 70 is the best timing,” she said. “They make this decision without coordinating it with their broader retirement plan.”

The right decision depends on income needs, health, marital status, tax strategy, and how other assets are being used. “In some cases, delaying to 70 is optimal,” Toomey added. “In others, taking benefits earlier and preserving investment assets or reducing tax exposure can be more effective.”

The key is integration, preferably with a trusted professional financial adviser. “Social Security should be part of a coordinated income, tax, and investment strategy, not a standalone decision,” Toomey said.

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.